LSCS lowers tax rate 7 percent, compared to 3 percent last year

Published 5:32 am, Wednesday, September 10, 2014

The Lone Star College System trustees voted to decrease its tax rate by 7 percent Thursday night because of rising property values, according to LSCS Chief Financial Officer Cindy Gilliam.

Last year, the college system reduced the tax rate 3 percent, from 11.98 cents per $100 property valuation in 2012-13 to 11.60 cents in 2013-14.

The new tax rate will be 10.81 cents per $100 property valuation for 2014-15, Gilliam said.

The change will take effect in October when taxpayers receive their bill.

“The reason we reduced it is because that $100,000 home is now going to be worth $107,000,” Gilliam said. “So, that homeowner’s bill will still be $116. We want the out-of-pocket cash to be the same for the taxpayers and rely on new properties that are being added for our new revenue.”

Gilliam said she believes that the LSCS board is “financially conservative” and pointed out to the trustees and Chancellor Steve Head that this is only the second time in the history of the college system to have this high of a tax reduction, since 1974.

In August, the board voted to put a bond referendum before taxpayers Nov. 4. Taxpayers will decide whether to support a $485 million bond that would be used to create more learning space to accommodate the extraordinary growth being experienced in the LSCS service area and also vote to fill three trustees seats.

From fall 2007 to fall 2013, LSCS has had a 57 percent increase in student enrollment, adding more than 30,000 students, according to Head.

“All of the colleges are up,” Head said Thursday night. “All of them are up.

“University Park is up 26 percent, Tomball is up 6 percent, North Harris is up 1 percent (and climbing, still registering students), Montgomery is up 4 percent, Kingwood is up 8 percent and Cy-Fair is up 4, Head said.

University Park is the newest campus and is serving an area in the Highway 249 corridor that hasn’t been serviced before, Gilliam said.